?UNAVOIDABLE? GLOBAL FLUCTUATIONS TRIGGER RISE IN FUEL AND LPG PRICES

Caption: Rizwaan Ali of Total Nadi Service Station fills up for customer Ashnil. Photo: MARGARET NAQIRI.

The price of petroleum products and Liquid Petroleum Gas (LPG) will rise at?midnight?tonight in the wake of the latest quarterly review of prices by the Commerce Commission.

Kerosene leads the petroleum products category with a rise of more than 8 per cent, followed by diesel with a rise of more than seven per cent. Motor Spirit also goes up by just over five per cent and pre-mix by four per cent.

LPG ? in Cylinders, in Bulk, and Auto Gas ? rises by six per cent.

The Chairman of the Commerce Commission, Dr Mahendra Reddy, said the increases were unavoidable but needed to be seen in the context of big price falls for all products in the last quarter.

?In July, kerosene fell by almost five and a half per cent, diesel by three and a half per cent and there were similar falls in the price of motor spirit and pre-mix. Similarly, gas fell by 5 per cent. These things are cyclical and beyond our control. Unfortunately this time, we have had an upward movement. But generally speaking, prices are pretty much where they were at the start of the year,? he said.

Dr Reddy attributed the rise in the cost of petroleum products to an increase in world market prices, the strengthening of the US dollar and an increase in the retail margin for diesel and motor spirit from 2.5 per cent to 3 per cent.

In the case of gas, the rise is due to increases in international butane prices, freight and similar exchange rate fluctuations.

?The Commerce Commission constantly monitors international prices and will always pass on reductions where possible. But it?s important to remember that these are determined by the international markets, where prices can just as easily rise as fall,? he said.

Dr Reddy said that the Government was in the process of positioning Fiji to be less exposed to international fluctuations in energy prices by using tax incentives to encourage investment in renewable energy, and by making a direct investment in domestic biofuel production.

?These rises underline the importance of the Government?s efforts to develop?alternative fuel sources and achieve greater energy independence. It is also important that we all make an effort to conserve as much energy as possible,? he added.

The Commerce Commission undertakes price reviews four times a year to adjust the domestic prices of Fuel and LPG to international fluctuations.

The price increases that come into effect at?midnight?tonight are as follows:

Petroleum products:

1.???? Kerosene: an increase of fourteen cents a litre (8.13%) from? $1.76 to $1.90.

2.???? Diesel: an increase of sixteen cents a litre (7.28%) from $2.21 to $2.37.

3.???? Motor Spirit: an increase of thirteen cents a litre? (5.03%) from $2.49 to $2.62.

4.???? Premix: an increase of?ten cents a litre (4.01%) from $2.45 to $2.55.

 

LPG:

1.???? 4.5 KG cylinder: Increase of 6 % from $16.29 to $17.25.

2.???? 12 KG cylinder: Increase of 6% from $43.44 to $45.99

3.???? Bulk (KG): Increase of 6% from $2.91 to $3.09.

4.???? Auto Gas (Litre): Increase of 6% from $2.05 to $2.17.

MINFO